ROCKLAND — An interim agreement calling for a $19-a-ton increase for trash handling by Penobscot Energy Recovery Corp. of Orrington was approved Monday night by the City Council.

Lynn Johnston, a vice president of operations for PERC’s managing partner, informed the council that an agreement had been negotiated with Sawyer Environmental of Hampden that would terminate the city’s contract with Sawyer.

Scott Hagemeyer, contract administrator for Sawyer, said there was still a disputed $4,700 bill that had not been paid. He said that Sawyer expected settlement of the bill before relinquishing its contract.

City Manager Cathy A. Smith Sleeper outlined the matter to the council. She said that there was a dispute as to whose responsibility it was for damage done to equipment at the transfer station, namely the trailers. It was the city’s position that the fault should be with the city’s engineer of the project and had so informed the company of the charges. Sleeper said the disputed bill was separate from the PERC agreement.

“My only concern is the speed of which to resolve this past due account,” Hagemeyer said. He said that would be a condition for terminating its contract with Rockland.

Johnston said that if the council agreed to the interim fee, PERC would draw up an agreement similar to the one with Sawyer and the city would deal directly with PERC at the same price it was currently paying, a $12.41 tipping fee, plus the $19 interim fee. As part of the agreement PERC would reimburse Sawyer $2 per ton until Sept. 30 when new long-term agreements for waste disposal were expected to be completed. At that time the city would realize a $2 per ton savings, he said.

Sleeper advised the council that plans were moving ahead with seeking a license from the Maine Department of Environmental Protection for use of a quarry for waste disposal. A meeting will be held later this week to work out the details of an application. Sleeper said she did not expect any action on the city’s application before Sept. 30 so that it was important to continue an agreement with PERC in order to keep the city’s options open.

Also brought up by Mayor Thomas Molloy was the prospect of using the quarry as a site for ash disposal from PERC. He presented information provided by Gordon Thompson, a member of the Solid Waste Advisory Committee on the practicality of accepting the ash material.

Johnston said that PERC had attempted to gain an opinion from DEP about the concept without success. He said that PERC had assigned an engineer to look at the proposal to try and get some facts.

“We are looking at it,” he said.

Councilor Robert Peabody objected to discussion of the ash disposal concept before the council had taken any action on whether to pursue the idea. Molloy overruled him saying that the council could at least discuss it as it was part of the overall picture.

Later in the meeting, Councilor Michael McNeil asked that an order be included on the June 11 meeting agenda that would authorize the city manager to seek licensing of the quarry as an ash disposal site.

The council also received a request from the four-community Boothbay Region Refuse Disposal District seeking an agreement to use the city’s quarry for the disposal of bulky and inert waste materials. The district generates up to 1,200 tons annually of this type of waste.

Alex Dmitrieff, manager of the district, reported that the DEP had indicated it would have no objection to such an agreement. He said that he would provide the council with a written statement to that fact.

The city has had an application before the DEP for two years for a license to continue using the quarry for demolition debris, and disposal of sludge from the treatment plant and filter aid from Marine Colloids.

Molloy told Dmitrieff that the council would consider the proposal next Monday. If approved the council would negotiate an agreement with the district for a tipping fee, he said.